Whether you’re a retailer, a field service provider, or part of the UK’s thriving third-sector economy, mobile payment processing can play a key role in optimising your operations and keeping your customers satisfied.
But it’s about more than just convenience. Mobile payment systems allow for:
- Faster checkouts
- Improved customer satisfaction
- Reduced hardware overheads
- Stronger fraud protection
- Real-time transaction tracking
Let’s break down how mobile payments work, what technologies drive them, and why businesses across the UK are making the switch.
How does mobile payment work?
Mobile payments rely on wireless communication between a customer’s device and a point-of-sale (POS) system or online platform. When a customer initiates a mobile transaction, the payment app transmits encrypted information via short-range wireless technologies or cloud-based APIs.
Step-by-step overview:
- The customer selects a stored card or account in their mobile wallet app.
- They authenticate the payment using biometrics (e.g. Face ID or fingerprint) or a PIN.
- The phone sends encrypted transaction data via NFC, QR, Bluetooth, or an online gateway.
- The processor routes the payment to the customer’s bank or card issuer.
- Approval is returned, and the transaction is complete.
Behind the scenes: What happens technically
- Tokenisation replaces sensitive card info with unique identifiers.
- Authentication happens on the customer’s device (using biometrics or passwords).
- Payment gateways securely transmit the data.
- Payment processors handle routing and fund settlement.
Benefits for UK businesses:
- Speed and efficiency: Shorter queues and faster service.
- Lower risk of fraud: Dynamic tokens, encryption, and biometric authentication.
- Data-rich insights: Mobile payments enable better customer analytics.
- Compliance-ready: With tools like Access PaySuite, you can align with PCI DSS and UK financial regulations.
Types of mobile payment technologies
Mobile payment systems encompass a range of technologies. Here are the most widely used methods in the UK market:
| Technology | How it works | Common uses | Examples |
| NFC | Wireless tap-to-pay via short-range radio waves | In-store checkout, transport, events | Apple pay, Google pay |
| QR code payments | Scan a displayed QR code to access a payment page or app | Pop-ups, restaurants, small retailers, donations | Paypal QR, Revolut QR |
| Bluetooth (BLE) | Devices auto-connect in the background based on proximity | Parking, loyalty systems, drive-throughs | Ringgo, Starbucks loyalty |
| Direct carrier billing | A charge is added to user's mobile bill for digital content | Streaming, games, subscriptions | Google play, Apple store |
| Banking apps | Payments initiated directly via mobile banking apps | P2P payments, merchant checkout, invoice payments | Monzo, NatWest, Starling |
What is a mobile wallet?
A mobile wallet is a digital app that stores payment credentials, allowing users to pay via their device instead of using physical cards. Most mobile wallets also support loyalty cards, travel tickets, and even IDs.
Popular UK examples include:
- Apple Pay (iOS users)
- Google Pay (Android)
- Samsung Pay (Samsung devices)
- PayPal (widely accepted online)
Additional mobile payment methods:
- Direct Carrier Billing:
Charges purchases (usually digital content) directly to a user’s phone bill.
- Banking Apps:
Many UK banks like Monzo, NatWest, and Starling offer direct mobile payment capabilities, P2P transfers, and merchant integrations.
Benefits for businesses:
- Reduced dependency on physical POS hardware.
- Built-in fraud protection and customer verification.
- Faster payments, lower abandonment rates online.
- Easy integration with loyalty, CRM, and digital receipts.
Why mobile payments matter for UK businesses
The UK is one of the most advanced mobile payment markets in Europe. According to UK Finance, more than 36% of adults used mobile payments in 2023, with Gen Z and Millennials leading the charge. And it’s not just about trend-following:
Real business value:
- Retailers:
Reduce queue times and accept payments anywhere in-store.
- Field service providers:
Accept payments on the move.
- Charities and community sector:
Enable donors to give quickly via QR or tap-to-donate options.
Mobile payments improve cash flow visibility and help unify customer experiences.
How to pick a payment processor
Choosing the right mobile payment processor ensures your business stays flexible, compliant, and future-ready.
Here’s what to look for:
- Multi-channel capability (online, phone, in-person)
- PCI DSS compliance
- UK-based support
- Seamless integration with your CRM, accounts and reporting tools
- Transparent pricing and scalability
Learn more: What is a payment processor?
How Access PaySuite can help
Ready to embrace mobile payment processing? Let Access PaySuite help you simplify payments, stay compliant, and enhance your customer experience.
FAQs
How much would a mobile payment processor cost?
Costs vary depending on your business size, transaction volume, and the features you need.
Are mobile payments secure?
Yes. Mobile payment systems use tokenisation, encryption, and biometric security to protect sensitive data and reduce the risk of fraud.
Can small businesses use mobile payment processing?
Absolutely. Many mobile payment solutions are designed specifically for SMEs and startups, with low entry costs and easy setup.
What do I need to start accepting mobile payments?
You’ll need a payment processor, a compatible card reader (for NFC), a mobile device, and optionally an app or online dashboard. Access PaySuite can help you get set up quickly.
Do mobile payments work offline?
Some mobile apps allow offline authorisation, but most require an internet connection. Ask your provider about offline fallback options.